yield to call
- yield to call ( YTC)The annual percentage yield of a security calculated using the yield-to-maturity formula but with the assumption that the security is called on the first call date or on the first par call date. American Banker Glossary————The percentage rate of a bond or note if the investor buys and holds the security until the call date. This yield is valid only if the security is called prior to maturity. Generally bonds are callable over several years and normally are called at a slight premium. The calculation of yield to call is based on coupon rate, length of time to call, and market price. Bloomberg Financial Dictionary
* * *yield to call ˌyield to ˈcall noun yields to call PLURALFORM [countable]FINANCE the yield that an investor will get from a bond if they redeem it (= change it into cash) at the first call (= when they can be redeemed before maturity):
• Many junk bonds currently are trading at their yield-to-call price, which assumes that the bonds will be redeemed by the issuer at the first call date.
* * *yield to call UK US noun [C] (plural yields to call) (WRITTEN ABBREVIATION YTC)► FINANCE the total yield (= profit) of a bond, etc. if the bond is kept until the call date (= when it must be paid back), when this is earlier than the maturity date (= the original date on which it was planned to pay it back): »
If the investment is called early at a lower price than what you paid, your yield to call will be lower.
Financial and business terms. 2012.
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Yield to call — The percentage rate of a bond or note, if you were to buy and hold the security until the call date. This yield is valid only if the security is called prior to maturity. Generally bonds are callable over several years and normally are called at… … Financial and business terms
Yield To Call — The yield of a bond or note if you were to buy and hold the security until the call date. This yield is valid only if the security is called prior to maturity. The calculation of yield to call is based on the coupon rate, the length of time to… … Investment dictionary
yield to call — Fin the yield on a bond at a date when the bond can be called. Bond issuers reserve the right to “call,” or redeem, the bond before the maturity date, at certain times and at a certain price. Issuers often do this if interest rates fall and… … The ultimate business dictionary
Yield to maturity — The Yield to maturity (YTM) or redemption yield is the yield promised to the bondholder on the assumption that the bond or other fixed interest security such as gilts will be held to maturity, that all coupon and principal payments will be made… … Wikipedia
Yield To Worst - YTW — The lowest potential yield that can be received on a bond without the issuer actually defaulting. The yield to worst is calculated by making worst case scenario assumptions on the issue by calculating the returns that would be received if… … Investment dictionary
Yield (finance) — In finance, yield is a percentage that measures the cash returns to the owners of a security. Normally it does not include the price variations, at the difference of the total return. Yield applies to various stated rates of return on stocks… … Wikipedia
yield to maturity — The rate of return an investor receives if a fixed income security is held to maturity. Chicago Board of Trade glossary The percentage rate of return paid on a bond, note, or other fixed income security ( fixed income securities) if the investor… … Financial and business terms
Yield-Based Option — A type of debt instrument based option that derives its value from the difference between the exercise price and the value of the yield of the underlying debt instrument. Yield based options are settled in cash. A yield based call buyer expects… … Investment dictionary
Yield to maturity — The percentage rate of return paid on a bond, note or other fixed income security if you buy and hold it to its maturity date. The calculation for YTM is based on the coupon rate, length of time to maturity and market price. It assumes that… … Financial and business terms
Call Privilege — The provision in a bond indenture that gives the bond issuer the option to redeem all or part of the bond issue, at pre determined prices on certain specified dates. These dates are known as call dates and form the call schedule. The term call… … Investment dictionary